Saturday 31 August 2013

300813 No trading (as planned) Psychology issues



Trades:
A. LOLPB (+2) exit TPO
B. REV @ 252 (-0.2),  exit 8 SMA
C.  HSL (-0.4),  exit TSL
D.  HSL , don't trade because D1 R just beneath =  poor RRR
E.  HSL (+2),  exit TSL, hope I would have taken this trade as price had broken D1 R and RL so a short made sense.

LT Trade
1. I have a very basic setup on the D1 chart, which is buy when price closes above the 21EMA and sell when it closes below it.  Today price closed below the D1 21EMA so triggered a LT short for me...


Notes:
So today is the fourth day I haven't traded. This was intentional as I struggled adapting to the lower liquidity in August. However it took until late last week  for me to realize this,  so figured I may as well wait for September to start seeing that I only had 4 working days to wait (the UK, we had a bank holiday on Monday).
Despite knowing that I had a week's "holiday" I have  not enjoyed my time at all because I have had no direction. I have withered in my act not to trade. Not having to get up on time, not having to do my prep,  not having to wait for trades, not having to place trades, not having to manage trades have resulted in me having no purpose.  This week I have been a trader who doesn't trade. I have been nothing.
To me this boils down to something I've worked quite hard on in my psychology blog. Everyone needs a purpose. When I am direction-less I have no reason to be, so generally find myself feeling low. Ultimately this week I have denied myself a purpose (albeit for the right reason) and although I have not quite fallen in to the "low" feeling, I have certainly felt antsy, anxious and unhappy.
As I write this one question and one observation spring to mind.
Q1. Did I really need to take a break for the rest of the week?  I had in fact done quite a bit to overcome my problems and reorganize my guide over  the weekend.
A1. YES I did need to take a break. Sure I had done some work on my guide over the weekend but on commencing trading on the Tuesday morning some glaring holes came to light. These "holes" were not actually problems with setups or analysis  but guide order. It simply wasn't clear or concise enough to work and trade from easily. It needed deciphering (this was due to recent updates). So yes it has been frustrating watching the markets move without me and of course my ego has assumed that I would have placed every trade perfectly, but in reality without a clear guide this would have been impossible.
OB: My Direction and Drive are focused solely on trading so clearly when I'm not trading, I'm going to have no direction and fell low. It stands to reason a simple fix for this would be to add to my Direction and Drive an additional purpose (and a reason for it)  unrelated to trading, so when I am not trading I still have purpose and my subconscious will remain happy. (I'll get onto this!)

Summary:  So another day not trading. Again just recording the chart action for my records. Significant work on psychology today, and feeling much better.

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